Strategic Change Management

BY; Izzatullah Khan ECL 40029 7 January 2011

Definition of Change
Implies making an essential difference often amounting to a loss of original identity or a substitution of one thing for another.

Change Management
Change Management provides a structured approach for making changes in a planned and systematic fashion to effectively implement new methods and processes in an ongoing organization. The goal is to prepare stakeholders for the transformation, ensure that they are knowledgeable to face change in a dynamic work environment, and ultimately ready to embrace the change.

Environmental Triggers of Change

The environment is: All factors, including institutions, groups, individuals, events, etc., That are outside the organisationbut that have a potential impact.

Some Elements in an Organisations Environment

Markets, clients, customers Suppliers Government, regulatory bodies Trade unions Competitors Financial institutions Labour supply Levels of unemployment Economic climate Technological, computing, info systems, e-commerce, internet advances Globalisation of trade Political ideology Family structure Distribution of wealth

External Environments (a)

The use of the mnemonics PETS, or PEST, or STEP draws attention to the multiple facets of the external environment.

The speed at which the internet has come to be used in almost every type of organisation (as well as the ones which are built entirely upon its capacities) is a clear example of the influence of the TECHNOLOGICAL ENVIRONMENT. Another example of the impact of this sector on organisational life is the threat to employee rights of using surveillance monitoring of emails and internet use, and the advent of sexual harassment via the sending of unsolicited pornographic emails.

External Environments (b)

The POLITICAL ENVIRONMENT is constantly changing. Governments change and new alliances are formed with old ones broken. With the advent of the European Union and the Common European Currency, no longer do individual countries have sole power over what laws apply and even what economic policies they might pursue. Groups such as the ASEAN-4 Group form significant trading blocs which must catch the attention of organisations trading worldwide. The attack upon the World Trade Center Building and the Pentagon, is an example of an event, whose influence will continue to be felt in a multitude of ways for many years hence.

External Environments (c)

The ECONOMIC ENVIRONMENT has always been of the utmost importance in forcing organisations to second guess what competitors might do and the changing needs and desires of actual and potential customers. Intertwined with all these aspects of the external environment, as they are with each other, is the SOCIO-CULTURAL ENVIRONMENT. Demographic changes, changes in living, working and leisure pursuits impact upon peoples needs and wants and the capacity of organisations to change to meet them.

Some Elements in an Organisations Environment Overall points: The various aspects of the PETS environment are interrelated (e.g. socio-cultural factors will influence economic factors and vice-versa). Some factors can be categorised in more than one sector. Few triggers for change emerging from the external environments can be responded to without taking other factors into account. Any force for change has multiple and complex causes. Organisations which ignore this deep complexity are unlikely to prosper.

Change Management effort

Leadership identified the risks of transforming logistics policies, processes, and technologies to better support the organization. Leaderships concern was that failure to address the issues around transformation could result in: Decreased productivity pre-and post transformational implementation; Loss of key talent across the logistics arena; Inability to successfully implement change solutions as envisioned; Program delays and budget overruns; Failure to realize the anticipated benefits of the change program; and Strained relationships among stakeholders.

Competition

Computers

Complexity

Change

Organisational Life Cycle (three phases)

Unfreezing Changing Refreezing

Give reasons. Be empathetic. Communicate clearly.

Explain the benefits. Identify a champion. Get input from employees.

Show top managements support. Publicize successes. Make midcourse corrections. Help employees deal with stress.

Watch timing.
Maintain job security. Provide training. Proceed at a manageable pace.

Factors of success
Corporate objectives Management style and system Business strategy Organizational structure Quality of human resources Working climate and Leadership

Factors of failure
Parochial self-interest. Some people are more concerned with the implication of the change for themselves and how it may affect their own interests, rather than considering the effects for the success of the business. Misunderstanding. Communication problems; inadequate information. Low tolerance of change. Certain people are very keen on feeling secure and having stability in their work. Different assessments of the situation. Some employees may disagree with the reasons for the change and with the advantages and disadvantages of the change process.

Types of Organizational Change

Organization-wide Versus Subsystem Change Examples of organization-wide change might be a major restructuring, collaboration or rightsizing. Examples of a change in a subsystem might include addition or removal of a product or service, reorganization of a certain department, or implementation of a new process to deliver products or services. Transformational Versus Incremental Change An example of transformational (or radical, fundamental) change might be changing an organizations structure and culture from the traditional top-down, hierarchical structure to a large amount of selfdirecting teams. Examples of incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. Many times, organizations experience incremental change and its leaders do not recognize the change as such.

 Unplanned Versus Planned Change Unplanned change usually occurs because of a major, sudden surprise to the organization, which causes its members to respond in a highly reactive and disorganized fashion. Planned change occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change.

Levels of Change
There are seven Levels of Change as follow LEVEL 1: LEVEL 2: LEVEL 3: LEVEL 4: LEVEL 5: DOING. LEVEL 6: DOING. LEVEL 7: DONE. EFFECTIVENESS - DOING THE RIGHT THINGS. EFFICIENCY - DOING THINGS RIGHT. IMPROVING - DOING THINGS BETTER. CUTTING - DOING AWAY WITH THINGS. COPYING - DOING THINGS OTHER PEOPLE ARE DIFFERENT - DOING THINGS NO ONE ELSE IS IMPOSSIBLE - DOING THINGS THAT CAN'T BE

Levels of Change

cont.

REFERENCES
Teaching the Caterpillar to fly by by Scott J. Simmerman, Ph.D.
http://www.squarewheels.com/content/teaching.html

Sample Organizational Change Management Plan

http://www.hhs.gov/ufms/ufmscmpfinal.pdf (accessed on 21 December 2010)

Employee Resistance to Organizational Change 2002 by Albert F. Bolognese

http://www.newfoundations.com/OrgTheory/Bolognese721.html

Basic Context for Organizational Change Written by Carter McNamara, PhD |